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HomeMy WebLinkAbout08121974i August 12, 1974 The City Council of the City of Palo Alto tit on this date at 7:30 p.m. in an adjourned meeting of August 5, 1974, aith Mayor Sher presiding. Present: Berwald, Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher, Norton Absent: Beahrs Status Report,- AB 2040 Bay Area Planning erkey Mayor Sher stated this matter had been referred by the Inter -City Council urging that Palo Alto take a position. The subject was to be heard by a Senate committee on the 15th of the month, so that a position taken tonight could be -communicated to the committee. At its last meeting the Inter -City Council took the position of supporting the bill, but Mayor Sher, acting for Palo Alto abstained because Council had not taken action. Councilman Comstock noted that Council had received a summary sheet from ABA G dated July 10, 1974 and a staff report of July 11, 1974 which summarized the status of the bill at that time. He recalled that in March Council took a position on the method of representation that would be followed in netting up the agency. In his opinion, the bill had been amended and re -amended so many times that it contained some very deficient features. Councilman Comstock felt that Council should reiterate its position of March 11 with particular ersphaeis on the direct election requirements for the Board of Directors. MOTION: Councilman Comstock moved, seconded by Henderson, that City Council remind the Legislature of the position it took on March 11 concerning the Bey Area Planning Agency Bill and the method by which the directors would be elected. Mayor Sher noted that the majority of Council took the position that the Regional Planning Agency should be composed entirely of elected representatives. Initially, the bill provided that the representatives would be totally appointed by municipalities -and Hoards of Supervisors. The next step would then be that the i.nitiel board would divide the` bap area into districts, and thereafter,, one-half of the number of represen- tatives would be directly elected. After 1980, it would be possible for citizens to change the Method of representative.selection, through the initiative process, opting for either a total systes of election or going in the other direction." Mayor Shone saw Olio are a compromise with some movement -in the direction of Palo Alto's eteteed position. He felt it fair to point out that other features of the bill had been questioned. The ptopoued agency would ultimately incorporate a number of exist regime' Agencies including the Bay Conservation Development Commission. There had beep some concern exp sewed as to whether the new agency would be as vigorous in defending the bay as the BCDC. A letter received from ABAC points out that the bay plan adopted by BCDC would become part of the charter of the neat/ organisation. It would take a two- thirds vote to make changes in the bay plan. Another feature which led some representatives in San Mateo County to oppose this new bill was that the new agency would have no veto paver over the local general plans of the agency. Councilwoman Pearson noted that Council had consistently let it be known that it wanted all of the officials to be elected. That posicion should be reiterated to the legislators. She stated discontent with placing the BCDC under this new agency, at least until it is proven that it can operate. Further, she supported the veto power of this agency over local activities; without it, they would be powerless. The section which refers to the provision for initiative referendum also needed to have recall added to it, particularly if there are elected officials. Finally, she felt that it was too long to go until 1980 with- out the possibility of a change in the composition of the boar as es- tablished. MOTION RESTATED: Councilman Comstock moved, seconded by Henderson, that the Mayor write to the Legislature and remind legislators of the position Palo Alto City Council had taken on March 11th, 1974 concerning the Bay Area Planning Agency Bill and the method by which the directors would be elected. This letter to include reference to the lack of veto power, lack of recall provisions, and the inclusion of BCDC. Councilman Berwzlld stated he would be as opposed to direct elections as others were in favor of them, and also felt that the transitional features rade sense. If any action were taken et all, it should be to support the bill; and then see if it could be worked out both in the Legislature and in practice, Councilman Berwald felt this was a start toward regional government. Perhaps if a letter were sent to the Legislature on the bill., it should include suggestions that dissenting Council persons had. Mayor. She stated that ABAG strongly supports the bill. The motion passed on the following vote: AYES: Comstock, Henderson, Pearson, Norton, Rosenbaum, Sher NOES; Berwald, Clay ,west of Councilman Comstock for a Letter t0�yo$ing SB Councilman Comstock stated he had talked with Miss Norek, Senior Aasia- tant City Attorney, about a change in the status of the bill; and he wished Council to hear her comments. Mies Norek said she had been in contact with Mr. Kaiser of the League of California Cities, and he reporter: that the bill would be mended to cover only Public Utility Commission meetings; therefore, it would no :Longer have the objectiens outlined in Nr. booth's report to Council. The League had withdrawn its opposition to the proposed bill because of the possible changes. It would be well for cities not to e formal statements of opposition to the bill, since the Senator ihtroduciag it was well aware of the cities' opposition. Mr. Kaiser thought the bill might be re -introduced eazt year, but it appeared to be a dead issue this year as far as cttit* were concerued. Councia.man Comstock said thet in view of these facts, he would Withdraw this item from the agenda. 1 3 1 8/12/74 west of Vice Mayor Henderson re D argon Bridge Mayor Sher noted that Conccil had Vice Mayor Henderson's memorandum of July 3rd and a memorandum from the City Manager's office dated July 8th with regard to this subject. Vice Mayor Henderson said there was also a letter from National Resources Defense Council and a letter from the town of Atherton. He explained that the purpose of having this item on last week's agenda was to have a discussion prior to Saturday's meeting on the Dumbarton Bridge. Since that did not occur, he simply would give a report. Meetings had been held aevera:l times with representatives from East Palo Alto, Mealo Parks and Atherton concerning the alternative of seeking funds for ac':esss roads to the Dumbarton Bridge and for storm drainage systems funds for East Palo Alto in exchange for opposition by all four citites to the new bridge. Saturday's meeting was supposed to have been a discussion among the city representatives and federal and state officials of the possibilities of obtaining funds for the access roads and the sewers. Instead, it became another public hearing on the bridge itself, and the arguments for and against used up all the time that was available, Vice Mayor Henderson said that }ayor Sher, Councilwoman Pearson, Council- man Rosenbaum and himself attended the meeting, The conclusion of those present was that there was little hope of stopping the bridge unless the communities on both sides of the bay were to join together in opposition. That seemed likely not to happen unless Palo Alto supports an Embarcader.o Road approach to the present bridge. Vice Mayor Henderson reported that the current status is that the Coast Guard is preparing a Federal Environmental Impact Statement on the new bridge. The State Enviroaneatai Impact Statement prepared by the California Department of Transportation was quite favorable in terms of supporting the project:, but the report remained deficient. The traffic count projections appeared to be far understated, and there was no discussion about provisions for mass transit in the new facility. MOTION: Vice Mayor Henderson moved, seconded by Pearson, that the Mayor be directed to write a letter to the Coast Guard emphasizing previous statements by Palo Alto incorporating comments about deficiencies in the State environmental impact statement. Councilman Comstock asked if there were any hope that Palo Alto could say to East Palo Alto that we would be interested in discussing their ideas about connections between the two comities in the area of Paabarcadero mad independently of the bridge. Vice Mayor Henderson replied that this very point was one of the reasons he had hoped to discuss with other Council members at an earlier date how serious they were about the original route which comes through the baylande and down between the ball park and the golf course. If Council majority were interested in pursuing that, then it should be done. East Palo Alto was talking about the possibility of following the creek around over to East Bayshore which would keep it all in San Mateo County. Such a plan would put all tie traffic on Eaet Bayshoxe, which would then turn left on the overpass to Embarcedero. see pg. 226 Mayor Sher reported an effort to determine If there were any hope at all that the Legislature might reverse itself on the construction of the new bridge. Assemblyman Arnett of Menlo Park suggested that if East Palo Alto, Palo Alto, Menlo Park, and San Mateo County were 1 3 2 8/12/74 all to take the position that approach roads would not be approved through their jurisdictions unless the bridge were left as it is but made safer rather than be reconstructed; then the Toll Authority would have to redesign the access roads and go to the Legislature to get the money to awake such an effort possible. If there were a united front from the several jurisdictions, then there might be some hope. Assembles Arnett said that -approval of the jurisdictions had to be obtained; and if t:sie were ao, it aright be worthwhile to write to the jurisdictions reaffitinii g Palo Alto's earlier view and expressing the hope that they would take a similar view. Mayor Sher felt this was the only glimmer of hope gotten out of the meeting. Councilwoman Pearson noted there were other things East Palo Alto was demanding. They would like assistance frum all the other jurisdictions in getting the amonnt of money that would construct the approach roads and the money that would give the a new sewage drainage system. Eat Palo Alto feels that unless Palo Alto corms through with some support in getting funds, then they would keep asking for the bridge. They are concerned that if they do not hold out for the bridge, they will not get these other amenities. Councilwoman Pearson felt East Palo Alto needed some firm comeeitments from Palo Alto, Atherton, Menlo Park, and the County that they would continue to get the money for the things East Palo Alto needed. The motion passed on the following vote: AYES: Comstock, Henderson, Norton, Pearson, Rosenbaum, Sher NOES Clay ABSTAIN: Bers:ald MOTION: Councilman Comstock moved, seconded by Pearson, that the Mayor write a letter to the East Palo Alto Hinicipal Council expressing Palo Alto's interest in discussing with them the possibility of some form of connection between Eabercadero Road and their community in the absence of a Dumbarton Bridge Construction Project. Councilman Comstock explained that the basis of the discussion should clearly presume that this kind of access is just that, and it is not to be considered part of the Dumbarton Bridge; but it would only be considered if there were no Dumbarton Bridge Project. Councilman Norton asked if this meant that if East Palo Alto did not oppose the bridge there would be no discussion. Councilman Comstock replied that he was not waking East Palo Alto's opposition to the bridg€' a necessary prelude to the discussion, but was only trying to set the context of the discussion. The queation could be stated as what kind of connection here could be between the two communities if there were no bridge. Council has taken the position all along that it is not in favor of a Dumbarton Road connection directly to the bridge. He understood that part of the feeling of the community of East Palo Alto to support the bridge was that it was a way of getting road construction done. His question to East Paso Alto was whether Palo Alto could discuss with them some connection between the two communities that would not be part of the Dumbarton Bridge. 1 3 3 8/12/74 Mayor Sher understood the motion to intend reaffirmation of Palo Alto's position on the bridge, but a willingness to discuss with East Palo Alto the possibility of providing some connection between the two communities in the event the new bridge is not constructed. Councilman Comstock agreed that this was his thinking, and he was simply asking for the opportunity to discuss the possibility. Councilman Clay asked where the road would be located. Councilman Comstock replied that he did not have a clear feeling as to the specific location the people of Palo Alto night have in wind, but he did think there was a sense of isolation and a desire on the part of East Palo Alto to establish through roads between the two communities. Councilman Clay said this was a completely different impression from the one that he had. East Palo Alto's first priority was not to establish a link between the two communities but rather, to have a bridge. The bridge would need access roads, and that would be their reason for wanting to use Embareadero Road or University Avenue. Councilman Clay felt this kind of thing might have been discussed in the Liaison Committee set up between the two communities. If it has not been discussed by the Committee, then this was being held out to use as a means of negotiating with East Palo Alto. If it has been discussed, then they Lust have rejected the idea; and he did not see any point in re -opening it. Councilman Clay said he would vote against the motion because he was against any opposition to the bridge, Councilman Comstock said Council had always been strict with the Liaison -Cotmnittee and had not permitted them to get into policy utters until the representatives had some guidance first from Coun.-:il. He felt Council would see this as a fairly basic policy issue. He saw the Liaison Committee as serving in the capacity of a comiirications link to carry this question to East, Palo Alto and work with them in setting up a meeting if they were interested. Vice Mayor Henderson reported that this precise avenue had been discussed at least four times. He felt Councilman Clay was not ruite correct in eaying East Palo Alto's first desire was the bridge. There was definite input from East Palo -Alto that if the other communities could agree to two-lane roods at the location of the four approach roads to the present bridge, then they sight well join in opposition to a new bridge. East Palo Alto was very interested in the way their community was locked in and in the traffic problems they have. Vice Mayor Henderson said that as the discussions had gone on, East Palo Alto had expressed a rather rigid position in terms of the Pabarcadero Road approach. Before discussing this with East Palo Alto, Vice ?4ayor Henderson felt there should be some agreement among the Council members. Councilmen Bervald commented that the only place such a road could go would be somewhere east of the East Bayshore access road. Councilman Comstock explained that he was simply searching for some definition and perhaps a response from East Palo Alto as to what they were trying to deal with. Councilman Berwald wanted to know why Council could not say that it was willing to talk with East Palo Alto about access roads without including any conditions. lie feared tho idea may sound like coercion to East Palo Alto. It was his feeling that under certain conditions, Council would be willing to talk about improving East Palo Alto's access to Palo Alto. 134 8/12/74 Councilman Rosenbaum thought Council was interested in doing some bargaining, It was his position that a four -lane Dumbarton Bridge was last -decade thinking, and it should not be built. From the standpoint of through traffic through Palo Alto, the city would be infinitely better off with a two --lane bridge and a connection at Embarcadero, than with a four--' ane bridge And no connection. There is a real problem as to where such a road would come ir., He asked staff if it had given any serious thought as to whether or not a two-lane access road might be able to be hooked up to Oregon Expressway. Naphtali Knox, Director of Planning responded negatively, Councilman Clay did not feel that Vice Mayor Henderson's comments were directed to Councilman Comstock's motion since he said that access roads had been discussed in the Liaison Committee, and those would be access roads to the bridge; whereas, Councilman Comsto.k was referring to an access road from one community to another, Councilman Comstock agreed this was so except that he was referring to the area of Embarcadero Road instead of University Avenue or some other area. Councilman Clay raid Councilman Co.stock`s motion carried the idea that such a road would be a way for East Palo Altana to get to Palo Alto, and that to hire, sounded presu:Ttptuous. Councilman Comstock replied that East Palo Alto was the best judge of that; and if they'saw no need for such a road, they could simply let Palo Alto know. Councilw,sman Pearson thought Council ought to make it clear to East Palo Alto that Palo Alto was not willing to talk about an access road if there is going to be a new Dumbarton Bridge, Palo Alto does nut want an access road that goes from Embarcadero to connect to a six - lane Dumbarton Bridges She said that East Palo Alto has been °pilling to talk about an access road using an E barcadero connection with the old bridges and their main idea is to get traffic off of Willow Road, They want to siphon that traffic out of their community by four access roads, even to the present Dumbarton Bridge. Councilwoman Pearson stated that East Palo Alto was now willing to talk about opposing the new bridge if they could have access to that bridge in four places, one of them being Edbarr_adero Road. They are even willing to talk about an Embarcadero Road connection which is one that actually comes far short of Embarcadero Road, down one of their streets. It was her opinion that Council should ask staff to do the studying, since the Liaison Committee was in no position to do the studying; and she meant staff members of Palo Alto and East Palo Alto, Councilwoman Pearson reported that at the last Liaison Committee meeting, the ambers of East Palo Alto simply said they wanted the bridge so they would have new access roads, Now, they were beginning to change their thinking. The motion passed on the following vote: AYES: Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Berwald, Clay, Norton Viet Mayor Henderson reported that the Toll Bridge Authority would reach the point in February where all indebtedness on existing bridges would be paid off. Legally, the authority must end all tolls on the Fay Bride, San Mateo Bridge, and Dumbarton Bridge, unless funds are needed for a new bridge. Comcil did make en assignment to the City Attorney's Office to investiiiate possibilities for legal action to stop the bridge, and there had been a report to council at last week's executive session: pa asked )flee Norek when a formal report would be received, 1 3 S 8/12/14 Miss Norek stated that the report was being prepared, and that Mr. Richard. Winnie, Legal Intern, had rendered an excellent draft report. The report could be ready ire the next week or two, but Mr. Booth had indicated he would like to review it before it was sent to Council. Therefore, the report would be sent to Council after M.. . Booth's return, which would be the week after the 26th. Councilman Rosenbaum said that everyone should be aware that the M C was ready to pounce upon any money that might become available, and they were prepared to go to the State Legislature to make sure that the bridges do not become free. The available money would be used for other modes of transportation. R,e nest of Councilwoman Pearson that Coun aapport: y Motion a Resolution for Responsibility for Employment Mayor Sher referred to Councilwoman Pearson's memorandum of August lot concerning a resolution for responsibility for employment. Attached to her memorandum were a variety of materials provided by Advocates for Responsibility for Employment. Councilwoman Pearson said she had been recently contacted by Sherri Danoff, Coordinator for Advocates for Responsibility for r:ployment; and that MS. Danoff wished Councilwoman Pearson to request Council to endorse the resolution. The resolution seeks to acknowledge that there is an unemployment problem in Santa Clara County; and it was important for employers to fill their work force with those who were unemployed in the area and to avoid, searching nationwide, where pos- sible. It was extremely important to incorporate criteria in Environ- mental Impact Reports, Economic Impact Reports, Subdivision Zoning, Industrial and Commercial Proposals, and developments of new general plans. Such criteria would help to determine whether or not new industries should reo lly be located in the proposed area. Councilwoman Pearson ucted that there could be a creeping effect on Palo Alto if it did not receive Employ:-ent Impact Reports. She stated receipt of a letter from Lois Henneberg, New Ways to Work, in support of the resolution. The ARE Resolution had been endorsed by many organizations including the Central Labor Council, Santa Clara Council of Churches, Santa Clara County Hums Relations Commission, Santa Clara County Status of Women Commission, League of Women Voters of Cupertino, Sunnyvale, San Jose and Santa Clara, the AAUW, etc. There was also a lengthy list of individuals who were in support. MOTION: Councilwoman Pearson moved, seconded by Henderson, that Council endorse the resolution. Sherri Danoff, 1582 Kennewick, Sunnyvale, said it was obvious from the list of endorsers that the resolution has broad -based support. She reported that the County Board of Supervisors and the San Jose City Council have already approved the measures now before the Council. She quoted statistics showing that the employment picture was looking increasingly dismal, and there was a growing ewarenesa that problems such as unemployment could and should be dealt with to a far greater extent at that local level. Mrs. Denoff also asked that Council increase the number of jobs available in the city, if pousible, and enact the ARP measures. Mayor Sher noted that a list of the unemployed showed figures for those persons between the ages of fourteen and sixteen, and he was concerned about the legality of urging people to hire persons of that age. 136 8/12/74 Yh. Danoff responded that there are, in fact, persons in that age group who were not in school and were looking for employment. Mayor Sher asked if she would mind if the language in reference to that age group were amended out. Ms. Danoff responded negatively. Mary Perez, 3457 Kenneth Drive, said that ARE wished to see the City of Palo Alto take responsibility for communication with businesses and industries to educate them as to the importance to the community of meeting resident employment needs, to encourage them to make greater efforts to hire locally. They wished to see the city government institute hiring policies that would encourage primary consideration of residents. Further, they would like to see the city take the responsibility for reeking appropriate business, industry, or other activities to provide e loymeat opportunities for unemployed or under -employed residents. ARE believed that before a business or industry would be given approval to locate, it would have to demonstrate that it would provide significant employment opportunities for residents. Councilman Rosenbaum stated that it sounds very good to suggest that Council should encourage employers to hire locally; but if this were done locally throughout the country, there could be a converse effect. Ma. Danoff responded that ARE's contention was that every area should be doing employment planning. Councilman Berwaid said he did not understand how they wanted to restrict e business locating in the area on the basis of how r.any people they Would eMploy. Ms. Perez replied that some businesses came and brought their entire package of employees with them, and it was ARE's feeling that businesses willing to employ residents should be encouraged to locate here. Councilmen Rerwaid asked if ARE would want Palo Alto businesses to first employ Palo Alto people. Ms. Perez responded that they would hope that Palo Alto residents would have the first opportunity, and then Palo Alto employers could look further afield. Councilman berwald thought it would be a parochial policy for Palo Alto, one of the highest income cities in the country, to exclude people from nearby communities who are also unemployed and perhaps need employment sore. NS. Perez thought the employment needs within Palo Alto would force the city to seek people from outside the community, but ARE hoped that the search for employees mould be conducted first within the county. Lois Nenneberg, 360 Forest, speaking for New Ways to Work, urged Council to support the resolution. New Ways to Works felt that the talented people in this area should be considered first to fill job openings. She tad the city for providing their organization with job lists so that they could inform people what employment opportunities are available is the area. Councilman Norton said he understood part of the resolution to say that tefore the city would accept a new industry in the city, it should evaluate it from the standpoi4t of whether or not the industry would be able to employ Palo. Altars. He felt this was quite different from the oral presentation which requested simply that businesses hire loci i ]y. Cosa:cii.area Norton asked which was the real concern. 137 8/12/74 Ma. Henneberg felt that one did not exclude the other, and she felt that evaluating an industry or a business meant simply getting some consideration for hiring Palo Altana. Ms. Henneberg expressed concern for both ideas, that the industries be evaluated and that they do hire locally. Vice Mayor Henderson noted that the third "Be it resolved" gave him some trouble since it made it sound as though Palo Alto was going to go out and seek new industry. AMENDMENT: Vice Mayor Henderson moved, seconded by Pearson, that the third resolve reading „Be it further resolved that the city of Palo Alto actively seek those_ activities which provide employment opportunities for the area's unemployed and underemployed workforce" be deleted; and that in the first resolve the words "and new" be added after the words "cooperation from existing" The amendment passed on a unanimous vote. Councilman Berwald stated that he did not see how industry could cooperate with the city in increasing employment. AMENDMENT MOTION: Council ..m i orwald moved, seconded by Pearson, that the first resolve read es follows: "Be it resolved that the City of Palo Alto indicate to existing and new employers its interest in their utilization of the area's existing ur.er:Tioyed and under -employed workforce". The amendment passed on a unanimous vote. Councilman 3eeeald felt that the words "to a greater extent than at present" in the second resolve assumes that Palo Alto is not now doing a good job. He asked if the city could utilize the areas existing in unemployed and underemployed to a greater extent than is presently done. Mk. Walker responded that the city's commitment to this goal was exemp- lified in Palo Alto's participation in the PEP program financed by the Federal Government over the past several years. He felt that in some ways the objective stated in the resolution conflicted with the objective of the Affirmative Action Program. Both objectives were meaningful and desirable, and staff would pursue both of them to the extent practicable. AMENDMENT MOTION: Councilman gerwald moved, seconded by Sher, that the words "continue to" be added to the second resolve after the words "Palo Alto" and , and that the words "to a greater extent than at the present" be deleted. Councilwoman Pearson stated that she had expected something like this, and it vas remarkable how all the leaning could be taken out of something, by amending it to death. She felt that wrien the City of Palo Alto had an opening, it should resist advertising nationally since there were people in this area who could qualify for any positions that might be svailabia. It was her opiniosx that PaJo Alto should be doing this at a greater extent than at present, so she would object to the amendment and not support it. The amendment pasted on the following vote: AYES: Bsrvald, Clay, Comstock, Sher, Henderson, Norton, Rosenbaum NOES: Pearson 138 8/12/74 Councilman Clay asked what would be done differently and how much would it cost if the resolution were adopted. Mr. Walker replied that the passage of the resolution would require some communication with imdu.striea in the area, and perhaps that could be done by including a statement in the utility bill mailing. Efforts could also be made such as communicating through the Chamber of Commerce. He said staff was already moving in some areas that might not have been used to the best advantage in the past such as the New Ways to Work group, the Resource Center for Women, and the other groups that have grown up in the community and were providing good service to the city. Councilman Berwald asked if the resolution would be contrary to any Affirmative Action Program of any private employer. ftr. Walker responded negatively. Councilwoman Pearson said that if the resolution was endorsed, she would want the employers to be informed in some other way than through the utility bill sa31ling. A recent survey showed that enclosing information with the utility bills was one of the poorest ways of communicating with the citizens of Palo Alto. She preferred that a letter go out to the employers' stating rather strongly that the city had adopted this resolution. The resolution as amended was endorsed on a unanimous vote. Oral Communications None Add ourumen t -a�e®�ne �� anYBt�sYpL The adjourned sleeting of August 5, 1974 adjourned at 8:43 p.m., August 12, 1974. Regular Meeting of August 12,194°4 The City Council of the City of Palo Alto met on this date at 8:45 p.m. in a regular meeting with Mayor Sher presiding, Present: Berwald, Clay, Comstock, Sher, Henderson, Norton, Pearson, Rasenbet Absent: Be:ahrs Jtal. 22 4 Couuci1&'o en Pearson referred to page 92, third paragraph under Oral Communications, and requested that the words "in commending one political faction against an opposing faction" be inserted after the words "and she did not feel Council should get involved". The minutes as corrected were approved on a unanimous vote. 1 3 9 8/12/74 Public Ue2ria - Underground Utilities Assessment District No. 17 - Alley 13 (018:457:4) Mayor Sher made the following opening statement: This is the time and place fixed for public hearings on the project identified as Underground Utility District No. 17 and the assessment district. There are three separate hearings scheduled, all of which will be combined and held at the same time since they all deal with the same basic project. These hearings are as follows: 1. Hearing on the question of whether the public convenience and necessity require the proposed acquisitions and improvements. This hearing is held under the State Constitution. 2. Hearing on the Engineer's Report prepared pursuant to Resolution No. 4961. This report, prepared by the City Engineer, consists of plans, specifications, estimates of cost, property descriptions, assessment diagram, and a proposed assessment, all of which are on file in the office of the City Clerk. 3. Hearing on the question -of forming Underground Utility District No. 17. All interested property owners have been given notice of these hearings and have been given the opportunity to file written protests. Additional protests, endorsements and communications will be received by tie Council at any time during the hearing, but only those written protests which were on file with the City Clerk at 7:30 P.M. and which are against the property inproveesnt and signed by the owners, will be computed in determining the percentage area of protest. After the presentation of staff testimony, anyone interested y express his views to the Council on the question of whether the public convenience and necessity require the proposed acquisitions and improvements, and as to any of the matters set forth in the Engineer's Report. Also, anyone interested may protest or support the formation of the Underground Utility District and the question of whether the public necessity, health and safety requires the establishment of said undel•ground district and the removal of all facilities for providing overhead service. I do not wish to restrict anyone's presentation, but you are asked to avoid repeating statements and information which have already been provided the Council, unless it is necessary in connection with your particular property. The hearings are declared open, and I will ask the City Clerk to report on the various notices and affidavits given in connection with tht hearings. Mat. Ann Tanner, City Clerk, reported that there was on file in the Clerk's office affidavits confirming that notice was mailed to all interested property ,.,wners on July 11 and July 25, 1974; that Notice of improvement was posted of all open streets within the ,rises nt district by Jul 30, 1974, and that the Notice of improvement was published twice in tf.e Palo Alto Times on August 2 and August 9. As of 7:30 p.m. cu thin date no legal protests have been received. MOTION: Councilman Berwsld moved, seconded by Co atogk, that Council find that the project bus no adverse environmental impact. Tha motion passed on a ups:mianous vote. 140 8/12/74 MOTION: Councilman Berwald introduced the following resolution and moved, seconded by Pearson, its adoption: RESOLUTION NO. 4985 entitled "A RESOLUTION OVERRULING PROTESTS ON RESOLUTION NO. 4961 OF PRELIMINARY DETERMINATION AND OP INTENTION" The resolution was adopted on a unanimous vote. MOTION: Councilman Berwald introduced the following resolution and moved, seconded by Henderson, its adoption: RESOLUTION NO. 4986 entitled "A RESOLUTION FINING AND DETERMINING THAT THE PUBLIC CONVENIENCE AND NECESSITY REQUIRE PROPOSED ACQUISITIONS AND IMPROVEMENTS" The resolution was adopted on a unanimous vote. MOTION: Councilman Berwald introduced the following resolution and moved, seconded by Pearson, its adoption: RESOLUTION NO. 4987 entitled "A RESOLUTION ADOPTING ENGINEER'S REPORT, CONFIRMING ASSESSMENT AND ORDERING WORK AND ACQUISITIONS" The resolution was adopted on a unanimous vote. Councilman Berwald introduced the following ordinance and moved, seconded by Pearson, its approval for first reading: AN ORDINANCE AMENDING SECTION 12.26.020 OF CHAPTER 12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL COD BY ESTABLISHING UNDERGROUND UTIL:T`l DISTRICT NO. 17. The ordinance was approved for first reading on a unanimous vote. tchell Park Library Expansion Vice Mayor Henderson recalled that at the July 22nd meeting Council rejected the bids for the Mitchell Park Library Expansion and referred the project to the Finance and Public Works Committee. At the Council seating there were indications that the bids may have been high since the bidders had knowledge of the total budget allocation for the project, and that some reduction in costs might be possible through alterations in design that would not substantially affect the appearance or utility of the building. Vice Mayor Henderson reported that at the August 1st- Finance and Public Works Committee= meeting, the budget figures were clarified. This project now stands at a total budget of $270,000, of which $181,O)O is for construction, $31,0083 for architectural fees, $20,000 for furniture, $3,000 for inspection, engineering, and other city expenses, and $35,000 for contingencies. The committee questioned tha architectural fees which were 17% of construction costs, and the large amount for contingencies. Staff has now revised the estimates so that this architectural fees ere now budgeted at $25,000, whtch is 13Z of the construction cost; axed contingencies have been lowered from $35,000 to $25,000. Thus, chorea was $16,000 that could be shifted to the construction element of the estimate. The committee voted unani- mously to alter the plans by removing the skylights, the skylight blinds, shade*, and the sun screen, and to redesign the window .wall for aluminum rather than steel. These steps reduced the estimated costs by about $320700. Vice Mayor Sanderson stated that the low bid had been $260,871; the car mattes voted to retain the total budget figura of $270,000 and recommended 1 4 1 8/12-174 that Council direct staff to seek new bids. The hope was that the plan changes and the budget changes would permit completion of the project within the present total budget figure. It was importaet to move quickly since each month of delay increases the cost approximately $5,000. Apparently, it would take at least a month to receive new bids once the Council has acted. MOTION: Vice Mayor Henderson moved, seconded by Berwald, that Council direct staff to request new bids on the Mitchell Park Library Expansion with the following changes from the original plans: 1) Eliminate skylights and substitute shake roof, 2) Eliminate skylight blinds and shades and add three new skylights, 3) Redesign window walls for aluminum as opposed to steel, and 4) Omit the sun screen. Councilwoman Pearson asked if a new kind of skylight was being put in that would not require blinds. Tune Fleeing, Director of Libraries, said the skylights were being - eliminated entirely and redesigning was done to use shake. Three skylight wells were being substituted which would provide adequate light and not have a sigenificant impact on the aesthetics. Councilwoman Pearson: asked if Council could see the elevations. is. Fleming responded that there were: plans available for review, and the architect was present. The plans were passed among the Council :embers for their study. Mayor Sher reported receipt of a post card from Daniel F. O'Connell, 311E Louis Road, urging Council to approve the proposed expansion of the Mitchell Park Library. Margaret Stromquist, 3418 Thomas Drive, thanked Council for the interest and time they had devoted to the library. She reported that every effort was being made to retain the original character of the building, and to work as harmoniously as possible with the Recreation Center which is adjacent. )frs. Stromquist recalled that the Program Report made in 1972 showed that at that time the Mitchell Park Library, serving a population of about 22,000 people, was forty percent below standard in the number of square feet and in the collection of books. She pointed out that many people, particularly the students, depend solely upon the branch library for a place to study, for resource material, and for intellectual stimulation. Mts. Stromquist asked for a speedy resolution of the problem. Councilman Comstock asked what the impact would be of removing the skylight. Hugh Kennedy of Spencer, Lee, Busse and Stypula, said the impact of removing the skylights would be to (educe the desirable feature of experi- encing the new space es a contination of the existing space. The existing apace has a feeling of a courtyard, and the skylights had been intended to continue that feeling and to. provide light to the interior, Since the skylighti would be omitted, light wells were added to provide for natural lighting. Vice Mayor Henderson acknowledged a. letter from lire. Irene Mantel, 3416 Cowper Street, and one from Cynthia Henderson, both of which supported the addition to the Mitchell Park Library. Ma. Fleming staged th'At Firs. Stromquist had done an admirable job in representing the community, and the staff was very grateful for the) concerns interest, and time given by Mrs. Stromquist and other citizens from the initiation of the project up to the present date. The notion was passed on a unanimous vote. 142 .8/12/74 Northern Corner of Webster and MATE venue• entat ve=minium 717 vs on F -- p -cat ono Mrs. Frances Brenner, Chairwoman of the Planning Commission, reported that the Commission transmitted David J. G'allow's application to Council -without recommendation. The reason for making no recommendation was that the Planning Commission had been given no details for discussion. The intent of this was not to penalize 2r, Callow, but to express frustration at being essentially told by State Condominium Subdivision Law that the Planning Commission members had to vote yes. She felt that it the law leaves no choice but to vote yes, then a local ordinance was needed covering condomi.nies, new structures as well s convetsiona. Mayor Sher said his understanding was that the state law suggests that the Planning Commissions were not to be influenced by the drawings. :'irs. Brenner stated there should be discussion of subdivisions, and there were aspects of condominiums which were different from apartments. There were certain conditions that protect a tenant in an apartment that did not protect a tenant in a condominium. Mrs. Brenner reiterated the need for a local ordinance. ;mayor Sher felt the problem stated by Nis. Brenner should be dealt with separately, at another tine, and that Council should proceed with the agendieed item. He noted that Council had the excerpts from the Planning Commission minutes and a staff report dated August 8th. Councilwoman Pearson said the Planning Commission is supposed to review a subdivision map, and it needed to have the proposed site plan rather than just a lino drawing. Further, they needed the elevations, which they hard always had in the past for other kinds of subdivisions. It was not possible for the Planning Commission to give a recommendation if it were given a blank piece of paper for review. Councilwoman Pearson saw the Planning Commission's chief function as determining the land use; therefore, they had to see the drawings. She felt it strange that the Architectural Review Board, whose only function was one of aesthetics, should be given all the drawings, and the Planning Commission receive nothing. Further, in her opinion, the A B began acting as a Planning Commission rather than the other way around. Councilwoman Pearson said it annoyed her and made her feel uncomfortable to not receive a recommendation from the Planning Commission: The Planning Commission had several questions on this particular matter which they could not answer because they did not have the drawings. MOTION: Councilwoman Pearson moved, seconded by Henderson, that the matter be referred back to the Planning Commission with the drawings, and then have that body make a recommendation to Council. Mayor Sher asked if the drawings were a legitimate factor in passing on a subdivision. Me. Norek, Senior Assistant City Attorney, responded that under. the Subdivision Law, the drawings that the Plating Commission received were appropriate; and the Coeaission does not have the authority at this point to pass on the daaigu of the condominium. Her understanding was that Mrs. Brenner' s remarks were in the for of a protest because the omission wants more information, and' Ms. Norek felt that more regulations could be added. She explained that referring the subject back to the Planning Commission would not help, because they could ee not do that >sueh wore with detailed drawings. Further, there was a UAW limit in which Council should be acting on this application. 1 +a 3 8/12/74 Mayor Sher asked that if Council referred this matter back to the Planning Commission with drawings, and then they recommended denial of the subdivision, would this be inappropriate? Nis. Norek replied that it would depend upon on what basis the Commission might recommend denial. She explained that the map received by the Commission, while not detailed at all, was is accordance with State law. More could be done by local ordinances if they were to be enacted. Mayor Sher asked if the matter would be considered approved if Council did not take action in ten days. Na. Norek responded affirmatively. Co`nscilraan Comstock said he understood the sense of frustration the Planning Commission had with the general situation, and he thought that the matter should be handled independently between Council and the Planning Commission. He thought they probably experienced the same frustration when they looked at subdivision lots, knowing there would be four or five houses, but not knowing what they would look like; in that situation, they had to go ahead and vote to subdivide the land, Councilmen Comstock said he would not be adverse to having Council and the Comils5ion enter into dialogue, or exchange agreements, to try to deal with the p obl procedurally within whatever State law constraints there ate. He did disagce' with the comment made with regard to the relationship between te ARB and the Planning Corm -- mission. In the past, there was no ARB; and he did not feel the Planning Commission %as any better off then since they were looking at lines on pieces of paper. The Council, on the other hand, was worse off, since they had no one looking at plant.. Councilman Comstock suggested there was a general basic problem that would not be solved by referring this particular application back to the Coo mission. The only gray anything neanfngful could be accozpliahed by referral would be if the applicant agreed to it. He said he would not support the referral motion. Mrs. Brenner expressed preference that the two ideas be separated since she did not want to see Mr. Callo'i's application take the brunt of the frustration that had existed for some time. The Commission felt that the ARB had given this subject careful attention. Mr. Knox commented that prior to the existence of the ARB, no one reviewed the buildings at all. A building such as this in an area zoned for this kind of structure simply went ahead with a condominium subdivision. The staff perceived that when architectural drawings reviewed by. the ARB went to the Planning Commission is an instance such as this condominium subdivision, the Planning Commission tended to stray fro= the subdivision aspects which they were limited to and to move into the ARB area, re --reviewing what the ARS had already done. Staff decided the way to handle this van to separaee the two functions and not send the ARB drawings to the Planning Commission. Now, staff felt that this was not an appropriate procedure; and even though the Commission is not able to review the drawings, they should have them to be able to understand the protect. Be assured Council that staff iouid be sending to the Planning Commission the approved ARE drawings as well as the minutes in all cases of condoeinium subdivisions. Vice Mayor Henderson stated that he seconded the motion to refer the subject back to the Planning Commission because he did not see any resolution of comments made by staff and the ARB concerning trees, location of the swimming pool, and removal of a barb --clue area. He was concerned about these comments as well as some of the iteoe mentioned by Mrs.. Crowder in the Environmatel Impact Report, He did not see' that these items had been spoken to. 144 8/12/74 Mr. Knox reported that Lois Atchison, Staff Liaison to the ARB, pointed out that the environmental assessment is prepared so that the first body looking at the drawings has the benefit of that assessment. At that time, the ARB took all the items into account; and the drawings have been changed to accommodate those suggestions. Mayor Sher asked if it were not true that the ARB was concerned about such items as the bar--b-que area and the tree that are not covered in the conditions. Ms. Atchison responded that the applicant changed the location of the swimming pool to accommodate a tree; hied the final plans approved by the ARP took into account all the suggestions of the environmental impact assessment. Councilman Clay thought that if this matter were referred back to the Planning Commission, it would get the drawings; but it would not be able to do any more. Mro. Brenner noted that where the driveeays were located was of concern to the Commission and not necessarily of concern to the ARS. The Planning Commission would also be interested in knowing how many parking, places there might be on the street, There waa no wish to repeat the disctission of the A .B with regard to the design of the budding itself, but the: impact on the neighborhood is of concern to the Planning Commission; and the very fact that there was a proliferation of condominiums was part of the subject. ,fir. Knox read the following language from the City Attorney: "The advisory agency (namely, the Planning Commission) shall make its report to the governing body. This body shall act upon the report within ten days or at its next succeeding regular meeting after the receipt of the report." The report from the Planning Co=mmission is dated August 7th; therefore, ten days would be August 17th, and this meting was the next succeeding regular meeting after the report. This means that if the subject were referred back to the Planning Commission, it would be deemed approved at the adjournment of tonight's m==eting. Councilman Clay was concerned that there were valid considerations not undertaken because information was not available. Mts. Brenner responded that she had not been referring to this particular subdivision when she made her comments about parking spaces, etc. Councilwoman Pearson stated that she had read the minutes of the Planning Commission and understood they were not allowed to take any action because of the State Subdivision Map Act on Condominiums. ?(any of these had c,noe before Council, and she had consistently voted no on them for a number of reasons. This subject really struck her because almost every member of the .Planning Co saion took issue with the fact that for the first time they had a white paper and absolutely no information. The Environmental Impact Report had a few things referred to that were not addressed as far as she could discerxia from the AU report; therefore, Councilman Pearson felt that the Planning Commieeion really aught to talks another look at the whole thing and cone back to Council with a recommetelation, She realized there was a tine limit, they would not be able to comae back with a recommendation, and the application would be considered approved. Her motion, however, wee just to force each Council der to face up to what was happening. Me. Novak suggested Council might want to explore whether or not the applicant would be willing to waive the time limitation • so that the ,tub jest Could be referred to the Planning Commission. a' 145 a/12/74 Mr. Gallow stated that he was not willing to waive the time imitation. The referral motion failed on a unanimous vote. MOTION: Councilman Berwald moved, cecoudcd by Rosenbaum, approval of th.a tentative condominium subdivision map application of David J. Gallow, with the conditions as outlined in the staff report of August 8, 1974, and with the additional condition that items mentioned in the EIA report of May ,loth be handled to the satisfaction of the staff and the ARB before the final map comes in, plus ARB recommendations No. 18 - the swimming pool shall be located in the northern corner of the lot behind the open area, No. 19 -- the proposed bar -b -glue area be eliminated, and No. 20 - the proposed fence along Webster Street be relocated in order to save the large arborvitae bush. Councilwoman Pearson asked Mrs. Brenner if the Commission had addre aed itself to the question of driveways at all. Mrs. Brenner responded negatively. Councilwoman Pearson asked Mr. Knox whether the subject of driveways had been discussed by the APB or whether someone from the Planning Department considered their location. ax. Knox reported that Ms. Atchison could not recall that the driveways had been explicitly discussed, but ha pointed out on a drawing *here the driveways would be located. Mr. Knox explained that the drawing; showing the driveways and having the approval of the ARB were available on the wall for perusal._ The motion passed on the following vote: AYES: Berwald, Henderson, Rosenbaum, Sher, Clay NOES: Comstock, Norton, Pearson Councilman Rosenbaum commented that the general problem had not been settled at all, and he thought there was certainly a jurisdictional and procedural problem. Year did feel that staff recognized there was a problem, and he expected that some tie after the Comprehensive Plan hard been taken care of, Council would be getting some information that would attempt to resolve the questions, Councilman Rosenbaum thought the performance tonight had been Mayor Sher stated that the matter of the relationship between the ARB and the Planning Commission was under review by the staff, and staff was concerning itself with what documents should go to the Planning Commission, .�2 Seneca $txa,, arf�ebwrw�+�wa+o..wwcww� ive C ! Subsiyi sia�ta ?ors. Brenner stated thin application for a condominium subdivision replaces an earlier application for a twenty-six unit apartment building, and it had received the unanimous recommendation of approval by the Planning Commission, MOTION: Councilman 8erwald moved, seconded by Roaenbao, that Council approve the Planning Cosiesion recommendation regarding the applications of Inwood Corporation for a Tentative Condominium Subdivision Map (11 unfits). located et 502 Seneca Street, being a portion of Lot 4, Block 52, University Perk, subject to the aided condition* listed in the Planning Department staff report of July 26, 1974; and finds that no significant environmental impact will result fro this action. Councilwoman Pearson felt the proposed development was much better than what had been previously seen on University Avenue, and the neighborhood would be much better off. She mentioned the present lack of control over condominiums, and the fact that in September Council will consider some regulation an the conversion of condominiums. In that same report, there will be suggestions made regarding the construction of new condomin- iums. Councilwoman Pearson was upset because tonight actions provide for twenty-one units of condominiums to be built in Palo Alto with no provision for low/moderate income housing. She referred back to Fire Zone I discussions when some members of Council indicated it would be unfair to require condominium developers to have a certain percentage of low/moderate income units unless this policy waa spread across the city. The Council has refused to take any strong positions requiring developers to include a percentage of low/moderate income housing in all developments, even with twenty or more units. The argument has always been that it is too expensive for the developers; and if the city forced them to put in low/moderate income housing, they would not build in Palo Alto. Councilwoman Pearson had heard for seventeen years that if the city was too strict with developers they would not build in Palo Alto. However, she noted that no matter how many restrictions were placed on developers, construction did not stop. In fact, the developers were always several steps ahead of the Council in finding the loopholes. She pointed out that almost every week Council considers applications for conversion or construction of another condominium. Following tonight's actions there would be these twenty-one units with no low/moderate income units included. Councilwoman Pearson came to the conclusion that Council did not really want low/moderate income housing in the city, and lack of decisiveness on the part of this Council in passing of the 20% low/moderate income requirement in develop- ments, and requests for continual studies and justification for low/moderate income housing were merely a stall. She would vote against condominiums because there vas no control over the subdivision map, and because Council did not require that there be low/moderaate income housing in these developments. The attitude taken by Council resulted in putting restrictions on the kind of people who can live in Palo Alto. It was time to get some ordinances that would say Council could look at the subdivision of condominiums and control them; and, furthermore, require that low/moderate income housing be required in all the condomin- ium developments including those that may include just five units. If Councilwoman Pearson did not see some action soon in this direction, then she would put the item on the agenda and force each Council member to stand up :aid vote. Councilman 1}ervald referred to Items 12 and 13 in Mr. Nidiffer's report dated July 26, 1914; and he asked if those items would address themselves to the environmental impact suggestions regarding drainage. Mr. Knox responded that Items 12 and 13 had been included to assure that the city not get into the kind of problem that it had experienced on recent deveiopser:ts where grades were inadvertently raised on the property adjacent to nearby houses. Councilman Berwald asked if these items would also be addressed to the site drains into the city storm drains as indicated in the environmental report. 1#. Knox counted that they were conflicting objectives; but he believed the plans had been reviewed except for the final grading, which is a matter that both the Planning Department and the Public Works Department would be giving close attention to. 147 8/12/74 POTION: Councilman Remold moved, seconded by Pearson, that the following two conditions be added as Items 21 and 22: that the final landscaping plan be approved by staff and the ARB; and, that the developer be prohibited from removing the two large redwoods and the oak tree, and any other trees to be removed must first receive the approval of staff. Vice Mayor Henderson stated agreement with Councilwoman Pearson that there should be requirements for low/moderate income units in all new construction, and said he had made such motions in Committee and at Council meetings. Unfortunately, nothing constructive had happened so far; meanwhile, he could find no legal basis for turning down the proposals since the applications fell within the current regulations. Vice Mayor Henderson expressed disappointment in Council's failure to act on a low/moderate income requirement, and he was anxious to move quickly in this area. It was his hope that Councilwoman Pearson would, in fact, put the matter on a future agenda. Mayor Sher stated that the motion before Council was to approve the recommendation of the Planning Commission with the two additional conditions added to Mr. Nidiffer's report of July 26. The .:_cation passed on the following vote: A'L'ES: Be:wald, Clay, Comstock, Sher, Henderson, Norton, Rosenbaum NOES: Pearson 4041 Pave Mi l i Road Site and ilesi n pr Ap oval Aptlication of Mr, & Mrs. A.L. An e1.1 MOTION: Councilman Comstock waved, seconded by Henderson, that Council uphold the recommendation of the Planning Commission to approve the application of Ms. and Mts. A. D. Angell for Site and Design approval of a garage/carport addition at 4041 Page Pint Road (County Addiess: 31000 Page Mill Road), Zone District 0-S, subject to approval by the City Engineer of the foundation engineering, grading, drainage, and erosion control plans. The motion passed on a unanimous vote. Propoaad Revision of the. Human Relate Cami*sion's EnablinLAydinance Mrs. Miry Cottrell, Chairwoman, Human Relations Commission, declared the seed the Commission felt to review the ordinance to encompass the Commission's ongoing consideration items such as discrimination against the handicapped in housing. tire. Cottrell had a meeting with Alec Andrus, City Staff, and Dennis DeCuir, Assistant City Attorney to discuss hat needed to be included in the ordinance. This resulted in the preparation of a draft ordinance by Mr. DeCuir. On February 14, the Commission had a special study session to outline goals and objectives for the coming year in the fields of housing, employment, community relations, youth programs, etc; and that study had been submitted to Council. The draft ordinance was reviewed on April 11, and a few more changes were suggested. Much work and study had bit`- done by the Commission over the pant year, and the result was en outline of what the present Commies/on and past Commissions had traditionally 148 8/12/74 been involved in at the request of Council. Mrs. Cottrell stated that the ordinance as it now stands deals with discrimination in housing and employment on a racial and religious background sort of thing, but HRC dealt with many more considerations than that. She made it clear that HRC waa not asking for any power or legislative ability. It was the hope of HRC that a citizen of Palo Alto would be able to read the ordinance and knew how he could be helped by the HRC. MOTION: Councilman Comstock introduced the following ordinance and waved, seconded by Pearson, its approval for first reading: ORDINANCE OF THE COUNCIL OF I`HE CITY OF PALO ALTO MENDING SECTION 2.22.050 OF, AND ADDING SECTIONS 2.22.060 and 22.22,010 TO THE PALO ALTO MUNICIPAL CODE, RELATING TO T}1E HUMAN RELA1IONS COMMISSION Councilman Comstock recalled that last January the Human Relations Commission had presented to the Council its list of goals for the coming year and it was understood that the problems the HRC deals with are out tnrirely predictable. The ►IRC made a conscientious effort to put dov.-n en paper those things with which they hoped to deal. Councilman Comstock felt that was a good mechanism for groups such as the IR+.; to use for giving infotration to Council rather than to try to be complet(!qy specific In an ordinance. In order to be more durable in terms of legislation, it is necessary to be more general in the phraseology use.i in the enabling ordinance. Therefore, that is the form that the ordinance would take both in terns of jurisdiction and authority. Councilman Comstock emphasized, in particular, the nature of the items that w,)uld appear under authority could be summarized with phrases such as edu,:at ton 1 conciliation studies and mediative efforts. Basically, the E C Was saying that they would like to perform certain functions on behalt of the Council; and they would supplement the material shown in the ordinance with more specific issues as they perceive them from year to year. Councilman Comstock realized that the generality of the ordnance could raise questions as co just what the reach of it was, and he asked Council to keep in mind two things. One of these would be the effort that had been made to deliberately be a little bit general to avoid the alternative which could very well be twenty pages of great detail. Secondly, experience shows that the HRC has functioned as a very effective body for the community and the City Council. With the help: of the City Attorney's office they had produced the wording that vas before the Council tonight. He urged the Council. members to approve the ordinance for first reading. Councilmen BerwFald counted that the reason for tbia change was to make the ordinance simple to understand, but he did not feel that Item 2 was very clear especially where it read "Factors of concern to the Commission were not limited to socio-economic class or status". He would like to see there the reiteration that would refer beck to the first paragraph which said, "the factors of concern to the Commission include items in which any person or group does not benefit fully from public or private opportunities or resources ie the community, or is unfairly or differently treated due to factors of concern to the Commission regarding socio-economic class or status, physical condition, or handicap, age, sex, race, ethnic background, ancestry". However, he could not understand what the Commies/fa) might be able to do about emotional condition, sexual preference, religious, con- scientious, or pbiloaoplsica1. ballad, Councilnar Berwald felt the ides of the separation of church and state entered the picture, and he did not think that the Commission by stating these are the areas of concern really made their intentions very clear. It was his under- standing that what the BBC was really talking about was discrimination 149 8/12/74 based on these kinds of things. Councilman Berwald said he did not have much trouble with something like socio-economic class, but he did not understand that things such as married or unmarried, emotional condition, intellectual ability, and sexual preference were covered specifically in any civil rights act that he kuew of. Mayor Sher understood Councilman Berwald to be expressing a concern over whether the ordinance could be easily understood, and whether these items mentioned ought to be factors of concern. He pointed out that the first paragraph did say that the jurisdiction was to deal with people who were unfairly or differently treated due to lectern of concern to the Commission; and that did meat discrimination based on one of the ground3. Mayor Sher felt in that sense it was clear, and the only question was whether Council thought the Commission ought to be concerned with some of these matters. Coun c i lman Berwald d i d emotional condition of it would be illegal to tioned. Ile asked rs. emotional condition or not think that taking into consideration the a person when hiring was illegal, but agreed discriminate in some of the other areas men - Cottrell what the Commission might mean by intellectual ability, for example. Nis. Cottrell replied that the iiRC does not function as a legal body enforcing laws, One of the best things that the Coy i;?sion was doing was mediation in rental housing. Councilman Norton expressed the opinion that the old wording was pre- ferable, be::ause in addition to talking about discrimination in hous- ing and employment the original ordinance goes on to say "to foster mntual respect and understanding among all racial, religious, nationality, and age groups in the community with respect to other fields of endeavor and activity". There could not be anything more general than that, and he did not think that SRC in its deliberations had violated the present charge or gone beyond it. Councilman Norton thought he would vote against the motion because the old language was more general; and in this case, he believed the more general it vas, the better. Councilwoman Peataon responded to Councilman Fierwald'a comment regarding intellectual ability saying that an I.Q. test for a child, whether or not it had been given under adverse conditions, would follow that child for the rest of his life. The results of such a test could licit possible promotions in Later life in spite of actual performance, and it is being docum rated that those kinds of things are happening. With regard to emotional condition, Councilwoman Pearson felt that persons who had needed psychiatric treatment, or perhaps shock treatments, were often discriminated against in areas such as employment. The ordinance was approved for first reading on the following vote: AYES: Clay, Comstock, Henderson, Sher, Pearson, Rosenbaum NOES: Berwald, Norton reef Perk rovemamts (f :466:4) Project iffier 72--44 (( :466:4 150 3/12/74 MOTION: Councilwoman Pearson introduced the following ordinance and moved, seconded by Rosenbaum, its adoption: ORDINANCE NO. 2805 entitled "ORDINANCE OF THE COUNCIL OF THE CITY 9Fi PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1974-•75 TO INCREASE ice APPROPRIATION FOR PROJECT 72-44 SCOTT STREET MINI PARK AND IMPROVEMENTS" Vice Mayor Henderson asked staff what would happen in this case where the project had been approved, but Council instead of approving the budget increase, directed staff to use money out of the mini park fund. Mr. Wacker asked if Vice Mayor Henderson envisioned taking money that had been allocated for one of the other mini park projects;. See pg. 225 Vice Mayor Henderson voted there was $90,000 in the budget for next year, and as has often been the case, the City does not always get all projects completed withing the fiscal year. He thought it was quite possible that the California area land would not be purchased within that limited time, and he did not like frequent revisions of the budget if it were not necessary. Vice Mayor Henderson suggested using some of the money from the $90,000 budgeted for this Scott Street park; and if the California Avenue project could go forward before the end of the year, then there could be a budget amendment. It was also possible that the city would be purchasing a great deal of land in the California Avenue area out of housing land bank funds, and not knowing for sure the placement of the park, be free to place it in an appropriate location, making the purchase out of the housing land bank fund, There was no commitment specifically for 1974-75, and Vice Mayor Henderson felt $30,000 should be used out of the $90,000 for the Scott Street project. If this were done, there would probably be enough money left to buy the land. for a California Aenue park. Mr. Walker responded that staff could not use money allocated for one of the other mini park projects without specific Council authorization. An alternative would be a budget amendment that would combine the Scott Street Mini Park with the California Avenue Mini Park, which would require only five votes. The City Attorney has stated that if the Council votes for a budget amendment and its intent is clear, the language could be drafted to meet the Council's action, Mr. Walker said the staff was committed to trying to complete the California Avenue Mini Park Project this year. If council asked staff to use nosey allocated for one of the other projects, them was the possibility they would have to core back at a .later time and ask for more money to reixaburse that project. Councilman Rosenbaum stated that the amount of money would be the same one way or the other, and for the sake of clarity, he preferred increasing the amount for the Scott Street project. SUBSTITUTE MOTION: Vice Meyor Henderson moved that Council amend the 1974-75 budget to combine the Scott Street and California Avenue Mini Park Projects. The substitute motion failed for lack of a second. Councilman Clay understood that Vice Mayor Henderson was questioning the way the city did its accounting. Be stated there was money allocated to ties California Avenue park which may not b. used this year, and tin nest year funds vould have to be rw-appropriated for that; and ha thought that was the thrust of Vice M*yor Henderson's remarks. 151 8/12/14. Vice Mayor Henderson said he would suggest the money be used for whatever project came along, and the following year there would be $180,000 in the mini park program which could be used for the California area if that came up at that time, or for some other project. His airs was to stay within what Council had already designated as a budget and not keep increasing it before the money was actually needed. Councilman Clay referred to last week's Council action to approve the closing of Scott Street, and commented that a discussion had not been held as to alternatives fox cicsing it, It was his understanding that a simple barrier might be put up at Scott and Channiug, and Council had not really committed itself to a park expansion. Mr. Walker replied that at last week's meeting there was a trap shown that indicated generally what staff had in mind. Specific plans for the expanded park were not yet made, and that was part of the reason for the need of the $30,000. Involved in the thinking, however, was a closure of Scott Street with provisions made for a cul-de-sac with an expansion of the park into what is now the street area, W. Walker said the money would allow staff to complete the existing park project also. Councilman Clay said two issues were being combined which were related, but distinct. He was concerned about the $30,000? because Council was only addressing the question of closing Scott Street. If the details of the plan were not available, then how did staff arrive at the amount of $30,000 as the figure needed for the project. Mr. Walker responded that staff knew generally what it would cost to develop park space of that size, and they also had an idea of what type of expenditures wound be involved in the closing of the street. Councilman Clay asked if this ordinance failed, wo u.d there be enough money in the budget to close the street. W. Walker replied negatively. He said there is currently $4,485,00 left in the appropriation for the project, and those funds are for the completion of the park as it now exists. Councilman Clay stated that his vote last week was in favor of closing Scott Street, and not to approve the development of the mini park. He explained that he was not necessarily against the park, but he did not believe that was the issue Council had before it. Councilwoman Pearson felt Scott Street Park was a very minimal park, and the street as it presently is used creates a dangerous situation. The park is Bred extensively by the neighbors, and also by those in the Convalescent Hospital. Scott Street was gradually improving, and the people who live there are improving their homes, and they do want the park. This vas the one site that everyone in the area of E- barcadero had been willing to settle on. Councilwoman Pearson said this was a perfect example of assisting a neighborhood that was trying to make its area something to be proud of. She urged Councilman Clay to vote for the money to finish the park, and remind Council that the neighbors wanted very much to help with staff in any way they could. Councilman Comstock said the idea of closing the street was to provide additional area for use in conjunction with the park by converting etreet area to park purposes - The ordinance was adopted on the following vote: AYES: Clay, Coswmtcck„ Henderson, Sher, Pearson, loisenbans NOES: 1era14, Horton 152 8/12/14, Councilman Norton spoke to the point of the City Attorney's recommendation for what he regarded as a very easy way to circumvent the six -vote requirement for amending the budget. If this were to be the pattern for getting five votes when normally six were needed, it would be very easy to combine a controversial item with a popular item by a vote of five and pass the controversial item by a vote of five. Some months later when the "motherhood joh" came up, clearly everyone would vote to make up the shortage created by the earlier vote. Councilman Norton stated he wooed strenuously oppose anything like that; and if he saw Vice Mayor Henderson or anyone else trying that in the future, he would be clearly heard from. In his opinion, the City Attorney was wrong since this would violate the intent of the ordinance requiring six votes. Joint Powferss A�reeaent for inter overruaentai z4ilo°ree_ Rel8ti tee Sew cgs -- UTION: Councilman Comstock moved, seconded by Berwald, that the Mayor be authorized to execute the Joint Powers Agreement enabling the City to continue participation in the Employee Relations Service. the motion paased on a unanimous vote. Qinance re Pre-Delineueaey Diversion 12jsci: Centtact Ameadm n (cMR:452:4) NDTION: Councilman Comstock moved, seconded by Pearson, that Council authorize the City gager to execute the necessary amendment to the contract and that Council approve an amendment to the 1974-75 Police Departnreut budget by adopting the following ordinance: OR»INANCE NO. 2806 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1974-75 TO INCREASE THE APPROPRIATION OF THE POLICE DEPARTMENT TO PROVIDE FUNDS FOR Tiff PRE -DELINQUENT DIVERSION PROJECT" Councilman Berwald stated he would be opposing wherever he could amendments to budget,; unless there was a compelling reason to approve them. Literally months are spent discussing the budget, and then a month after passing the budget, Council asks for additio'na.i. money. He preferred reserving amending the budget for new and unforeseen priority items that need to be dealt with; therefore, he would oppose the additional budget item, but he would vote for the program. Councilman Berwald recommended that the City Merger be asked to take the money out of the contingency fund. He asked that the motion be divided. Vice 13syor Henderson explained that the main purpose of this motion was to increase the revenue because the city was receiving a grant of $6,700. Every time the revenue se.s increased, the expenditure would have to be increased; and that part he disagreed with. Vice Mayor aenderevn .toted that the Police Department was staffed at a certadan level, and this would not require higher staffing. He could not understand why every time the city got a grant to help out is a certain area, Council had to then increase the expenditures by that amount. The Police Department expenditures would remain virtually static on this, but there would be scare money coming in to help. Vice Mayor Henderson felt the ameadeaent ohould have been to increase the revenue and not have to do anything about expenditure. In tbie case, the city w.a+a receiving outside funds; and this vas not a budget aaandeent increasing the city's expenditures. 153 8/12/74 Police Chief Zurcher said that if the city takes the money, it must agree to use it in the manner agreed to in the agreement signed in 1972. It would go into the Police Department's budget, and they would Continue doing the same things they had been doing; but those dollars had to be accounted for, and they would be accounted for in the Pree delinquent Diversion Program. Vice Mayor Henderson pointed out that this was extra money over what had been put in the budget; therefore, it seemed to him that some money should be transferred from the Police Depa.rtuemt back to the generaal fund, for instance. The Police Department would be spending - what had already been budgeted. The Department had been in the program for two years, and Council approved a budget which covered staff needed for the program. Vice Mayor Henderson asked why the expenditures had to be increased because a few dollars were received from outside. Councilwoman Pearson explained that tha city would get matching funds, and it would not cost Palo Alto any more money at all. In her opinion, this was not the place to save money. This was one thing that would really benefit children. The Police Department had been doing an excellent Job in the last two years in diverting children out of Juvenile Hall and keeping them out of that system. If some Council member had problems with the bookkeeping, Councilwoman Pearson felt this was not the night to handle them. She urged Council members to not 'urn down funds which ', uuid help zu3 eniles. Councilman Comstock noted that in the draft ordinance submitted by the Manager's office, there were two sections. One called for increased departmental revenues by $6,700.00, and the other one called for an increase in expenditure; so both sides of the book were covered. Councilman Berwald said he stood corrected, and he withdrew his desire to have the motion divided. He still could not see why a program that had been going on for two years was not in the budget when it was being discueaed, and that was his point. The motion wad adopted and the ordinance adopted on a unanimous vote. (Clay out.) (lurch Purchase and Uae of GGrden Property Northeast_ o Cta tural Center (QiR:463:4) Dr. Don Parker, 15 Phillips Road, said the second ward of the fk rmon Church had been located in its present building at Addison and Guiuda since the early 1930`s; but the building was now inadequate for their weds. A plot of land on Middlefield Road near Charleston Avenue was acquired when the church realized it would eventually need a larger facility. In January, * Church Building Committee was formed, and it vas asked to erne all available property in Palo Alto inclining that already held by the church, and to recommend the beat location for a new building, After a careful study, the Building Committee recommended that the garden property near the Palo Alto Cultural Center and Library be given first priority. This recoaeeeendation was given approval by the local church leadership and by its membership. Their, purpose this evening was to request that the City Council consider making the garden property available for construction of a church building. In return, the church would consider making available to the city, on an equitable basis, the property on Middlefield and/or Addison and Guinda. Councilman Comstock understood that there would be an expanded presentation on the subject. Council seers had known about this idea only since / last Thursday, and he wondered if Dr. Parker were seeking a definite answer st this meeting. Councilman Comstock feat this was something where 154 8/12/74 Council might want to have an opportunity to find out how the public felt about it and make sure they understand what was being suggested. He thought perhaps a disservice would be done to everyone if the presenta- tion were heard this evening resulting in Council giving a yes or no answer, since Council might find itself later on wanting to reconsider its position. He asked if it ware essentia]. that Dr. Parker have a fairly definitive answer from Council at this meeting, or would he be amenable to Council referring this to a Committee. At the Committee meeting, an expanded presentation could be heard from the church represen- tatives, and the public would be able to give its input. Dr. Parker responded that the hope was that Council would give an indication of whether or not there would be the least bit of interest in pursuing the matter further. Councilman Comstock stated that if there were not a firm requirement that the whole thing be settled tonight, his inclination would be to give his gut reaction which was "forget it"; but on the other hand, he preferred that the matter be taken up in Committee to give time for community input. Dr. Parker replied that a delay of three weeks or so would be acceptable to him. Mayor Sher comoented that if the matter were referred to Committee, it should be understood that did not indicates any interest at all; and the subject would be completaly open. If they really warted some indication from the Council, then he assured the representatives of the church would want to proceed with their presentation. MOTION: Councilman Comstock roved, seconded by Henderson, that this matter be referred to the Finance and Public Works Committee for early review by the Committee and to provide opl'ortunity for public input and early return to Council with re commendation. Councilwoman Pearson stated she had thought about this, and it was her feeling that DT. Parker deserved a prompt answer. Perhaps three weeks was too long to wait, and referral to the Fina.ce and Public Works Committee might be just a charade, The particular neighborhood in question did not even want the city hall expanded when it was located on that site, and the neighborhood protested when that land was suggested for low/moderate income housing. The church may find that it has a problem getting another church located on Middlefield Road, but that may still be its best bet. Councilwoman Pearson felt that if the City recommended low/moderate income housing on the site which the church owned on Middlefield Road, there would be another angry neighborhood. Her oast opinion was that the neighborhood would not want a church OD the garden property, and there might even be questions raised as to whether the city should be working that closely with s religious group. Personally, she would not be interested in having the church built there; and her own point of view was that sending it off to the Finance and Public Works Committee would be just kidding the representatives of the chu: ch. Vice Mayor Henderson said that when he came tonight, he was ready to say no on the basis of the drawing. However, he had second thoughts about saying no before there was a chance to heel, from Dr. Parker and from the people in the neighborhood. He stated, though, that he e*w very little chance of his voting for the project as outlined. For instance, he felt completely negative about the parking plan's. 155 8112/74 1 i The referral motion passed on the following vote: AYES: Clay, Comstock, Henderson, Berwald NOES: Pearson, Rosenbaum, Sher ABSTAIN: Norton Mr. George H, Holdaway objected because the representatives of the Building Committee had a few facts that they had wanted to present tonight and they felt they had been denied the right to be heard. MOTION: Vice Mayor Henderson moved, seconded by Berwald, that the matter be reconsidered for discussion tonight. The motion to reconsider passed on the following vote: AYES: Henderson, Berwald, Pearson, Rosenbaum, Sher NOS: Clay, Comstock ABSTAIN: Norton Mayor Sher said the motion to refer ies now before council. The referral motion failed on the following vote: AYES. Berwald, Clay, Comstock NOES: Henderson, Pearson, Rosenbaum, Sher ABSTAIN: Norton Mayor Sher said Council would hear this item tonight. George 11. Roldaway, 3861 Grove Court, showed slides; of the garden property, the property owned by the church on Middlefield Road, and the chtiirch located at Addison and Guinda. Dickerson McAfee, 734 Melville Avenue, stated that he thought the garden property would be a better place for the Outdoor Theatre to hold its performances rather than using the Fire Circle at Lucie Stern Community Center. Ronald D. Andersen,, 3212 Louie Road, stated that the facility presently occupied by the fbrmon Church was inadequate primarily because of the youth programs. Many young people were reached through the programa of the church who might not be reached through programs presently available through city"vourcea. It was Mr. Andersen's opinion that the city would be enhanced if it would permit the church to build a facility somewhere in Palo Alto. A member of the audience wbo gardened in a plot behind the library expressed his gratitude to the city for making it possible for his and others to garden over the past four years. Be felt the garden property wee, in fact, an important part of the city's park system. The Mormon Church placed a great deal of emphasis on raising food, and be thought it a bit ironic that they would consider building s churo'.on property that was carrying out part of its philosophy. 156 8/12/74 MOTION: Councilwoman Pearson moved, seconded by Henderson, that it was the sense of the Council that the exchange or sale of the garden property not occur. Councilman Rosenbaum said that what had joist happened, hearing from a neighbor and hearing from a gardener, was just an indication of what would happen at a committee meeting except that there would be more people expressing those views. It was his feeling that the property should be held by the city. Mayor Sher stated it was important to preserve that open space for public use, and he would not want to see that particular piece of city property disposed of. The motion passed on the following vote: AYES: Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: None ABSTAIN: Berwald, Norton Golf Pro Contract (C�:461:4) MOTION: Councilman Berwaid coved, seconded by Norton, that this zs„atter be referred to the Finance and Public Works Committee. Mayor Sher reviewed this subject with staff, and he reported that the city had a month to month arrangement with the golf pro. Mr. R. A. Witt, 769 Allen Court, felt the contract could be concluded without referral to a committee. Mayor Sher asked if ?'fir. Witt were prepared to see the proposed contract adopted in its present form without any further discussion. Mr. Witt said there were still some vital points that needed tc be raised, but bis committee felt they could be handled tonight. Councilman Clay asked what impact referral would have on the golf p'ro doing his job. Keith Bruns, Director of the Recreation Department, stated that the contract had bean continued on a month to month basic since the first of the year pending discussions with the Golf Course Advisory board. The golf professional is in agreement with the contract the way it is written. Staff would like to get going with the new contract and see how it oper&taa. The Calf Course Mvieory Committee suggested giving the golf pro more authority on maintenance, and that had beau taken care of in the contract. Mr. Bruno felt that an agreement had been reached on the revenue for the golf pro. He preferred that the contract not be delayed. Mayor Sbes commented that if there were some other problems apart from what is contained in the contract, or if there is a desire that en= changes be made in the contract, then she subject should be dealt with in the .Committee. He would support the referral motion. The referral motion passed on the following vote: - 14rwe .d,Henderson? Norton, Sbet, Pearson, Rosenbaum NOBS: Clay, Comstock 157 6/12/74 1974-75 Tax Rate ( 1:464:4 MOTION: Councilman Rosenbaum introduced the following ordinance and moved, seccneed by Norton, 1tc-adoption : ORDINANCE NO. 2807 entitled "OR0INANCE OF THE COUNCIL OF THE CITY OF PALO ALTO FIXING THE TAX RATE FOR THE FISCAL YEAR 1974-75 at 74Q PER $100 ASSESSED VALUATI0N" Vice Mayor Henderson made the following statement: "Of all of the taxes imposed on us, the property tax seems to be the one cost protested by taxpayers as inequitable and uncontrolled. Every governmental body that collects Loney from this source gives lip service to this problem and promises to bring relief. Such relief very seldom occurs. Any property awner who looks at his property tax bill over the past ten years sees a huge rise caused by both the tax rate increases and the assessed value increases. He will note, too, that the increase far axceesis the cost -of -living increase for that period. We are told that the current inflation spiral can be stopped if we increase these takes to reduce consumer spending, but whac good is it if we merely transfer the money from individuals and corporations to governmental bodies who spend it all. To have any appreciable effect on inflation, individuals, corporations, and governments, should cur down on spending; and the leaders should be governmental bodies. Frankly, I have more faith in individuals fighting inflation than I do in government ever controlling spending. Admittedly, Palo Alto has a low tax rate, only 74; per $100 assessed value. Palo Alto also has very high receipts from sales taxes and receives about one-third of its income from utilities profits. Relative to most cities, it is In a very healthy situation. We have seventeen million dollars in rea:r-ves, of which maybe six million dollars are required; and some eleven million dollars are surplus from previous years unexpended funds. If any jurisdiction is in a position to set an example in reducing property taxes, it is Palo Alto. If you want to preserve the full seventeen million dollars in reserve funds, you can still do so following a tax decrease. Palo Alto would still be spending far more than other cities, even if it decreases by this amount. Our material includes a chart showing tax rates of other cities with their own utilities. Many of these are not comparable situations. Santa Clara has partial Bureau of Reclamation power and must pay full rates to P G & E for much of its power. Lodi has little industry. We can compare with Menlo Park which has an 86C rate with far less sales tax revenue and no income from utilities. It is being argued that in 1974-75, we are finally going to feel the pinch. Our long time ability to use fifty percent of the sales tax revenue for Capital Improvements will end. We will need about eighty- six percent of the sales tax money for operating expenses, and thus have only fourteen percent for Capital ltip ovementss. Maybe this is true, but I doubt it. I have heard similar warnings every year that 1 have been on the "council. For 1973-74, the budget showed only twenty- three percent of the sales tax revenue would remain for transfer to Capital Improvements. In reality, we are finding that over fifty percent remains from thin past year for transfer to Capital Improvements. At this moment of near national economic collapse, were should set an example by reducing the property tax. If, indeed, we end up in 1974- 75 transferring an insufficient percentage of sales tax revenue to Capital Improvemeats, ehe tax rate can be increased again.. But I doubt that this will happen. The assessed value has been incre.assir&g et a fester rate than the cost -of -living index and will probably continue to do so. This year the total assessed value is up 10.2%. The cost of living for the same period was up 8.2%. In 1973.74, the assessed value was up 12; and the cost of, hivir, , 5.22. For the past three years, the assessed value has risen 22.4%, and the cast of living, 182. Teat us give the gayer back that extra 41/22 we have gained from him in just the last throe years. 1 realise that the city taut is a very nail percentage of our total tax bill; ono, we can shown 1 5 8 8112/74 the county and the school district that if we can reduce our already small portion, they should be able to follow suit. We cannot do much about the school tax, and I wish we could; but we can set an example in an area where we do have some say. Last year we were afraid to lower the tax rate because SB-90 tareateaed us with the inability to raise the rate in the future above the 1973-74 rate. New legislation now allows charter cities to increase their rates up to the limits shown in their charters; and for Palo Alto, that is $1.25. A reduction of four cents in Palo Alto's tax rate, from seventy-four, cents to seventy cents would redizce.tho income to the City by about $150,000. That is about one percent of our operating budget. There are dozens of places where $150,000 could be cut from out budget. However, if it is not the desire of Council to :educe expenses by that amount, we can draw from the current reserves. $150,000 is less than one percent of the total reserves. Also, even with the reduction of $150,000, property owners will be paying $112,000 more in property taxes this year than last year, The amount here is mall, but the principle is large. The property owner has long dema.zded and merited relief. I have listened to many commenta here at Council meetings about the beleaguered residential taxpayer. Here is an opportunity to come to his aid.' SUBSTITUTE MOTION: Vice Mayor Henderson ,roved, seconded by Comstock, that the Council fix the tax rate for the fiscal year 1974-75 at seventy cents per $100.00 assessed valuation. Councilman Rosenbaum said he vas dumbfounded. He felt this vas an almost irresponsible action on the part of the Chairman of the Finance Committee. Council was well aware of the rapidly escalating expenditures that everyone has had to undergo, and a number of members of the Finance Committee have suggested increasing utilities because they recognized there would be certain problem. Recommending cutting the property tax rate to 70c runs counter to any sound fiscal management of the city. Councilman Rosenbaum recommended continuing with the 74c tax rate. Councilman Berwald thought Vice Mayor Henderson made a noble speech. Obviously, it would be a very politically popular thing to do; and he thought they should be decreased. He saw the increase in revenues at $70,000, which was roughly two cents, and the increase in sales tax transfers about $70,000, which was two cents. It seeve4 to him that the rate could be reduced to 72C without being fiscally irresponsible, but he thought that more than that this year would be too much. Councilman Berwsld said that all year long Council approved expenditures of $250,000, $3250000, and so on; and he thought that this might be the wrong time to try to reduce the tax rate. He suggested that the time to save money was when Council wins VOt1314 for additional services, some of which may he not too essential or risk; and noneprodeetive. In that way, Council, Supervisors, and Leg;istors, could really prove that they are fiscally responsible. To sped the Money and -then reduce the tax gate below the increase in revenues is not wise. SI STTTHTE MOTION: Councilman Berwald moved, seconded by Horton, that the taut rage be reduced to reflect au income commensurate with the income of last year from property taxes, which would be a reduction of two cents to 72a per $100 assesaed valuation. Mr. Walker said that if therm were serious interest in reducing the tax rate, he would suggest a referral of the subject to committee so that staff could advise Council what some of the implications might be. His recommendation was that tha city- go shoed with the 74c tax rate That would be his first preferences, but failing that, referral to committee would be is order to allow for discussion. 159 8/12/74 Councilman Comstock thought perhaps Vice Mayor Henderson went a little further than he should have in commenting on what he felt were supporting points. The effect of Cleo whether it would be two cents or four cents, would reduce the revenue the city will collect from property tax. It would not reduce any expenditures. This night, in turn, cause Council over a period of time to re-examine ways in which it spends money. The single thing accomplished here is the money that has to be brought to the budget to meet its expenditures are reduced in this area and will have to be made up some place else. The other points Vice Mayor Henderson made were very valid. This cityhas a number of really unique and substantial sources of relrenue. Many cities do not, and the School Dixttricts clearly do not at all. Councilman Comstock stated that the sales tax and the property tax are two of the more regressive taxes that are levied on people in this country and state. There was a responsibility to deal with this regressive tax much more than the School District does. It was important to minimize the impact of the regressive tax, and that was what the whole battle of SB-90 was about. This was clearly an opportunity to do something. Councilman Comstock said he was dumbfounded at Vice Mayor Hender'son's comments too, but only because he had not thought of it himself. 3e hoped Council members would consider the motion in the spirit in which it was offered and will support it. His own preference was the four cent reduction, if not more. (Councilman Clay said it came like a shot out of the blue that anyone would suggest cutting tales by four cents or two cents, for that matter, without having had discussions in the Finance and Public- Works Committee. This, to him, was sheer irresponsibility. It did not make sense to him to have Council sit there and make decisions of this type no matter how miniscule the impact might be. In his opinion, the proper time to make this kind of. consideration is whey you are looking at the total fiscal matter in regards to the city. Couhcilman Clay -felt -that if this were going to be considered, it should be done next year when Council would be looking at expenditures and revenue, and then adjust the tax rate to whatever it ought to be. To do it now would be ridiculous. Councilwoman Pearson did not think Councilmen Rosenbaum and Clay were .in any position to call Vice Mayor Henderson irresponsible. Vice Mayor Henderson was the first Councilman in years who had been able to come into the city budget system and actually save the taxpayer millions of dollars. He is the sole Councilman who has authored motions that lopped off close to two million do1l:rs from the budget. Further, he has also wade it a point to attend every single meeting during the budget tine, which was more than so a members of the Finance Committee chose to do. Through his own efforts, he has changed the format of the budget so that it is actually becoming a document that citizens can understand. It should be no surprise that Vice Mayor Henderson would suggest a cut in the tax rate, because she had been reading this in the Finance and Public Works Committee meetings minutes time after time throughout the whole year. Councilwoman Pearson thought it was terrific that he had the guts to do it. Councilman Norton asked Mr. Walker if his concern about the motion was one of dollars. ?k. Walker responded affirmatively. Councilmen Rosenbaum recalled that last year at budget time, expendi.turee were increased by 1.3 million dollars. The revenuers were anticipated to go up by $00,000. The city is $800,000 worse off this year than it wte last year. To talk about reducing the tax rate by four cents was shear malarkey, and be would have., no part in it. 160 8/12/74 Vice Mayor Henderson responded to Councilman Rosenbaum that he had been through that one each year, and the city never went through the total amount budgeted for expenditureo. To Councilman Clay he stated that when the Finance and Public Works Committee wad looking at the budget to the spring, there was no knowledge available of the assessed value. The figure that has corns to the city now, as actual, is over $70,000 more than we actually have in the budget for 1974--7S. Mayor Sher said that a tax decrease was something that was very difficult to be against. He commented that if the motion to reduce the tax rate had been coupled with a motion to reduce expenditures in the budget by en amount equal to the resulting cut in revenues, that would be a different thing. Mayor Sher did not feel that using reserves for aome of the expanded programs was setting any kind of an example during a period of inflations. In the packet, there was a memorandum comparing the taxes of the City of Palo Alto to those collected by the County Schools and Districts. As an example, one property paid city taxes in 2952-53 of $48.72; and in 1973-74, that same property paid $77.70. The other districts imposing a tax on the same property was requiring $216.00 in 1952.53; and in 1973--74, $1,123.00. Mayor Sher gave several other examples showing that it was really not Palo Alto that was doing the damage. He would vote against the motion. Co wcflmsm Berwa1d's substitute motion failed on the following vote: AYES: Berwald, Norton NOES: Clay, Comstock, Henderson, Sher, Pear on, Rosenbaum Vice Mayor Henderson's substitute motion failed on the following vote: AYES: Comstock, Henderson, Pearson NOES: Serwald, Clay, Norton, Sher Rosenbaum The ordinance setting the tax rate at 74a: per $100 assessed valuation was adopted on the following vote: AYES: Clay, Comatock, Norton, Sher, erwe id, Rosenbaum NOES: Henderson, Pearson Aso *a1 + t .e..IteM 16 Forward }011 N: Councilwoman Pearson moved, seconded by Berwald, that Item 16 dealing with the request of citizens for response regarding traffic situations, be moved forward on the agenda. Adiour *nt {It' 3: Councilman Comstock moved, seconded by Norton, that this a aseetftig be adjourned until 7:30 p.m., August 19. Councilwoman Pearson did not approve of adjourning, and she stated that tha people in the sudiauce who had come to speak should be heard. Councilman Mock stated that thoa effect of his motion was to have the *sends reams at 1taama 13 next Monday. 1 6 1 8112/74 Mayor Sher also stated that he felt it was unfair to those in the audience to adjourn the meeting. The motion to adjourn passed on the following vote: AYES: Clay, Comstock Norton, Sher, Rosenbaum NOES: Henderson, Pearson ABSTAIN: Eervald d ournme.ut The meeting of August 12, August 19, 1974, Item 13 in the City of Palo Alto, ATTEST: 1974, adjourned at 12:00 midnight to 7:30 p.m., Agreement for Maintenance of State Highways be first on the agenda. City Clerk 1: APPROVE: Mayor 1 6 2 8/12/74